I think some concern is warranted simply because few people are aware that the default VS Code distribution has spyware and proprietary addons in it, and you do need to use something else if you prefer a fully FLOSS ecosystem.
I didn't know the addons were proprietary, so I was glad to learn about that
But I think anybody who even knows what FLOSS means would know to at least do some research before installing an application from Microsoft if that's something they're worried about
All in all, I still don't see a reason for panic. The author makes it sound like Microsoft is going to kill the entire open-source editor ecosystem and prevent anybody from ever creating an alternative to their worse and worse "venus flytrap" of a tool. I just don't see a pathway to that.
I think some concern is warranted simply because few people are aware that the default VS Code distribution has spyware and proprietary addons in it, and you do need to use something else if you prefer a fully FLOSS ecosystem.